People have a problem with delayed gratification. This is something which worries me and it should you! For some parts it makes sense. You need your fresh fruit and vegetables on a daily basis. So it is worth more money for you to have it right now. Compared to growing your own fruit and vegetables.
This is exactly the problem with the current monetary system.
If we look at the latest interest rate decision from the FED, the USA privately owned central bank, recently announced that they no longer increase the interest rate. By doing so they are increasing the chance President Trump will be re-elected. After all: people vote with there money! Bill Clinton said once: “it is the economy, stupid!”
In a well-functioning market is just the supply and demand which sets the interest prices. As we all know is the current money market not free. Central banks are tampering with it. They have set a certain value of the currency, are looking for certain inflation rates and they decided if the economy will hit a recession. If they decided to have a recession than they just make the money most expensive.
The central banks are using a few methods to influence the money supply and economic activity. This is the following: 1. by providing commercial banks with cheap money they can simply influence the economic activity. With its bond purchases, it influences the long-term credit market. The big problem with this is that there are no real savings to back this. Nor is there any real economic activity.
So what when the bubble will implode? Then there is a massive debt. No economic activity, no employment, no tax revenue. Nothing. Just a huge debt which should never be expected to be repaid.
With the manipulation, the central banks are just reducing the borrowing costs. The reduced borrowing costs result in increased economic activity. But the activity is future economic activity being consumed already. So what will we have an economic activity?
Due to the influence, the central banks have on the economy and the excellent job the educational system did with brainwashing, we see that the central banks are highly effective in the manipulation of the masses.
The side effect is that no one realizes that the central banks are nothing more, and nothing less, than a privately owned financial institution. An institution which offers the shareholders great results. Would you trust the economy into private hands? Even if they have more economic understanding than the politicians who try to ruin the economy with taxation? The central banks are doing it with inflation.
It is time for some different models. Let’s go for something else. Let’s go for real money! When this moment happens we will see that real money will have high returns: this is Gold. So are you ready to benefit from it, are you ready to protect your wealth? Or will you see it going in thin air?